USfidelis Lays Off 20 Percent of Workforce/ Company Founder Moves Into Mansion

USfidelis remains a giant in the extended auto warranty business. However, the company work force has been slashed. In April the company employed nearly 11 hundred workers, today they employ roughly 5 hundred. The company released a statement yesterday saying they have been working hard over the past year to make sure customers are treated fairly and honestly. The company has been under fire from consumer groups, along with attorney generals across the country. The company said " because of the difficult economy, and the ongoing criticism from some who have ignored the changes we have implemented USfidels' new sales have decreased and cancellations have increased dramatically." Fidelis operates in an industry with little regulation, the company says they have implemented the following procedures: These are also listed on the company website.

Because of the company’s commitment to the people it serves, USfidelis:

Markets vehicle service contracts offered by only well-established, reputable companies that have been providing such protection for many years.

Offers each customer a 30-day, money-back guarantee.

Provides each potential customer the opportunity to fully review the contract they select prior to purchasing coverage. Those draft contracts are sent immediately by e-mail upon request.

Has in place a team of more than 100 customer service representatives who work to meet customer needs and address questions.

Requires customer service representatives to attend rigorous training regarding all interactions with customers.

Responds to each and every complaint received through the Better Business Bureau process within 24 hours of receipt. As a result, all but a handful of those complaints have been resolved.

Records all phone calls for quality assurance. And, if employees fail to follow those procedures, we address those issues immediately.

Ensures that all company marketing materials are clear regarding our role and the fact that we are not affiliated with any vehicle manufacturers.

Has submitted to an extensive, independent audit that measures the company against standards of conduct and best practices established by the Vehicle Protection Association. We believe we are substantially compliant with their defined standards as we understand them and are optimistic that the third-party auditors will validate that assessment.

Since the layoffs, News 4 has been contacted by several employees. Those employees are upset about losing their jobs two weeks before Christmas, one of them told me it's upsetting to see company founder Darain Atkinson moving into a mega mansion as many lose their jobs. According to the St. Charles County Assessor's office Atkinson's 20 thousand square foot home is the largest in the county. According to the city of Lake St. Louis it cost 17 million dollars to build. Through a company spokesperson we have extended an interview invitation to Atkinson, we would like to ask him about the business, his home, and the future of the auto warranty business.